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HomeMy WebLinkAbout2026-026 - OC School of the Arts & The Legacy Fund RESOLUTION NO. 2026-026 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY OF TAX EXEMPT OBLIGATIONS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $46,000,000 FOR THE PURPOSE OF FINANCING AND REFINANCING THE ACQUISITION OF LAND AND IMPROVEMENTS, CONSTRUCTION, AND ACQUISITION OF EQUIPMENT FOR ORANGE COUNTY SCHOOL OF THE ARTS AND THE LEGACY FUND WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the California Government Code (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement Relating to the California Enterprise Development Authority, dated as of June 1, 2026 (the "Agreement"), in order to form the California Enterprise Development Authority (the "Authority"), for the purpose of promoting economic, cultural and community development and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the City of Santa Ana (the "City") is a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the construction of capital projects; and WHEREAS, Orange County School of the Arts and The Legacy Fund (collectively, the "Borrower"), both California nonprofit public benefit corporations and organizations described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code"), have requested that the Authority participate in the issuance of one or more series of revenue bonds or loans in an aggregate principal amount not to exceed $46,000,000 (the "Bonds") for the purpose of financing and refinancing the acquisition of land and improvements, construction, and acquisition of equipment for the Borrower, located at or adjacent to the following streets in Santa Ana, CA 92701: (i) 800 North Bush Street, (ii) 917 North Bush Street, (iii) 625 North Grand Street, (iv) 801 North Main Street, (v) 902 North Main Street, (vi) 906 North Main Street, (vii) 1000 North Main Street, (viii) 1010 North Main Street, (ix) 1018 North Main Street, (x) 1104 North Maim Street, (xi) 1107 North Main Street, (xii) 1110 North Main Street, (xiii) 1111 North Main Street, (xiv) 1119 North Main Street, (xv) 208 East 10th Street, (xvi) 123 East 11th Street, (xvii) 916 North Spurgeon Street, (xiii) 900 North Sycamore Street, (xiv) 912 North Sycamore Street, (xx) 921 North Sycamore Street, (xxi) 1120 North Sycamore, (xxii) 839 North Broadway (xxiii) 843 North Broadway, (xxiv) 845 North Broadway, (xxv) 915 North Broadway, (xxvi) 919 North Broadway, (xxvii) Resolution No. 2026-026 Page 1 of 4 200f202 West Washington Avenue, (xxviii) 201 West Washington Avenue, and (xxix) 207 West Washington Avenue (the "Project"), to be owned or leased, and operated by the Borrower; and WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City because the Project is to be located within the territorial limits of the City; and WHEREAS, the City Council is the elected legislative body of the City and meets the definition of "applicable elected representative" of the City (as defined in Section 147(f)(2)(E) of the Code) authorized to provide issuer and host approval of the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds and no comments were received, and now desires to approve the issuance of the Bonds by the Authority. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA RESOLVES AS FOLLOWS: Section 1. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute issuer and host approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 2. The payment of the principal, premium, if any, and interest on the Bonds shall be solely the responsibility of the Borrower. The City shall have no responsibility or liability whatsoever with respect to the Bonds. The Bonds shall not constitute a debt or obligation of the City. Section 3. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary to the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 4. The officers and officials of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Resolution No. 2026-026 Page 2 of 4 Section 5. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this 2nd day of June, 2026. al rie mezcu or APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By- Andrea N. Garcia Senior Assistant City Attorney AYES: Councilmembers Amezcua, Bacerra, Hernandez, Lopez, Penaloza Phan Vazquez 7 NOES: Councilmembers None (0) ABSTAIN: Councilmembers None (0) ABSENT: Councilmembers None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify the attached Resolution No. 2026-026 to be the original resolution adopted by the City Council of the City of Santa Ana on June 2, 2026. LI 9 Date: - nnifer all City C ityofSan na Resolution No. 2026-026 Page 3of3 PAGE INTENTIONALLY LEFT BLANK